Central banks unaffected by losses in implementing monetary policy.
Central banks usually don't lose money when implementing monetary policy, but some do, especially in developing countries. Even advanced economies' central banks worry about financial risks. Some think financial problems make central banks print more money and lower interest rates. However, a study on the Bank of Korea found that its losses didn't affect its monetary policy decisions. This is because of the bank's transparency and responsibility in targeting inflation, and its belief in a quick economic recovery.